Why crowdfunding may be the future of startups

The ebb and flow of venture capital, IPOs, angel funding, and private equity investing makes forming a feasible startup challenging at times. It often depends on recent successes; when startup success stories start heating up, the money flows. When things start looking bad or people lose money, the cash often dries up quickly.

Crowdfunding might just be the answer that will allow for a consistent flow of funds for startups. Sites like Kickstarter and IndieGogo give access to investing to those wanting to dabble while startups get access to minor investment money, often enough to seed the ideas. It’s a symbiotic relationship that can keep the money flowing in both directions.

Our friends at GPlus examine the world of crowdfunding, showing how this growing industry is offering more to both businesses and amateur investors. Click to enlarge.